PM to review coal, power projs status after GoM meet on Jul 14

NEW DELHI: Prime Minister Manmohan Singh will hold a meeting to resolve inter-ministerial differences relating to environment clearances for coal and power projects after the Group of Ministers meet on July 14.

"The Group of Ministers meeting is scheduled on July 14. So depending upon the outcome of that, the PM's review meeting will be held," a senior coal ministry official said.

The official added that the dates were yet to be decided for the meeting, which has been postponed four times since May.

Besides reviewing the performances of key sectors like coal and power, the PM's meeting is likely to deliberate upon solutions to resolve the tussle between environment, coal and power ministeries on the contentious issue of green clearances for infrastructure projects.

Earlier, softening its stance, the Jairam Ramesh-led ministry had cleared in June six coal blocks, which included five coal blocks falling in 'no-go' mining areas for three major power plants in Orissa.

Among these, three coal blocks (Meenakshi-A, Meenakshi-B and Meenakshi Dipside) have been allocated to the Ultra Mega Power Plant (UMPP), while two coal blocks (Manoharpur and Manoharpur Dipside) have been allocated to the 1,320 MW power plant of Orissa Power Generation Corporation (OPGC).

One coal-block (Dulanga) has been allocated to NTPC's 1,600 MW power plant.

As per the government data, performances of both power and coal sectors have not been satisfactory so far in the current Plan period and the reason often attributed for this is non-availability of coal in adequate quantities.

The widening demand and supply gap for coal is expected to reach 142 million tonnes in 2011-12, with domestic availability of only 554 MT against the requirement of 696 MT, according to a Planning Commission projection.

Coal and power ministries put the blame on environment ministry for delaying approvals by citing green norms, thereby affecting key projects in their sector.

The Environment Ministry's guidelines have defined 'no--go' areas for mining as those with over 30 per cent gross forest cover or over 10 per cent weighted forest cover.

Moreover, the 12-member panel of ministers -- headed by Finance Minister Pranab Mukherjee-- in its July 14 meeting is likely to try and resolve issues hurting coal production in the country.

Six coal projects-- allotted to firms like ADAG, Essar, and Aditya Birla Group for fuelling their thermal power plants-- which have been stalled due to pending green approvals, are likely to be taken up in the upcoming meeting.